Estimated amount of contracts
remaining to be executed on capital
account and not provided for (Net of
Advances): 946.39 4,011.88

2. Other Commitments:

(i) The Company is committed to invest a
further sum of Rs. 999 lacs (31-03-2014:
Rs. 2,320 lacs) in the equity share
capital of Bhavnagar Energy Co. Ltd.
(BECL) as per the terms of the
Shareholders'' Agreement. The Company
is also committed to grant subordinate
debt of Rs. 540 lacs (31-03-2014: Rs.
540 lacs) to BECL in the manner and in
the form as may be finalized by the
promoters with BECL.

(iv) Demands in respect of Central Excise
Duty, Custom Duty, Service Tax and
VAT as estimated by the Company 19,157.13 9,439.04

In respect of the above, the expected outflow will be determined at the
time of final resolution of the dispute.

4. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Company''s existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

5. The Company has entered into a Shareholders'' Agreement for its
investments in the equity share capital of Bhavnagar Energy Co. Ltd.
(BECL) and Bharuch Dahej Railway Co. Ltd. (BDRCL). The agreement with
regard to the equity investment in BECL, inter alia, includes terms
whereby the Company''s investment in the equity share capital of BECL is
subject to restrictions as regards transfer of shares up to the date of
successful commercial operations of BECL. Similarly, the agreement with
regard to the equity investment in BDRCL, inter alia, includes terms
whereby the Company''s investment in the equity share capital of BDRCL
is subject to lock in period restrictions. As per the said terms, the
Company cannot transfer any part of the equity shares acquired pursuant
to the agreement for a period of four years from the date of commercial
operations of BDRCL.

7. As per the provisions of "The Micro, Small And Medium Enterprises
Development Act, 2006", the principal amount payable to Micro, Small
and Medium enterprises is Rs. 814.38 Lacs (31-3-2014: Rs. 726.92 Lacs).
The payments to Micro Small and Medium undertakings have been made
within the prescribed time limit/ date agreed upon with supplier and
hence no interest is payable for delayed payments. These amounts have
been included in Trade Payables.

This information has been determined to the extent such parties have
been identified on the basis of information available with the Company.

9. The Scheme of Arrangement and Demerger for transfer of V-SAT/ISP
Gateway Business of the Company to ING Satcom Ltd., an unlisted Company
against cash consideration of Rs. 6 crore, was sanctioned by Hon''ble
High Court of Gujarat vide its Common Oral Order dated June 15, 2012.
The "Appointed Date" of the Scheme is 1st April, 2010. Subsequent to
the Order passed by the Hon''ble High Court of Gujarat, sanctioning the
Scheme of Demerger, two separate applications for transfer of V-SAT and
ISP Gateway Licences standing in the name of the Company to the name of
Transferee Company viz. ING Satcom Limited were submitted to Department
of Telecommunications (DOT) on 31st January, 2013 which are still
pending for approval before DOT.

As per the legal opinion obtained from Legal Consultant, though the
Scheme has been sanctioned by the Hon''ble High Court of Gujarat and has
become effective, the Scheme is subject to and conditional upon the
approval of the Government Authorities for transfer of Licences from
GNFC to ING Satcom Limited.

During the year, an Agreement-Cum-Indemnity Bond was executed on 12-04-
2014 between the Company and ING Satcom Limited whereby, pending
transfer of Licences, the assets of demerged business (other than
Licences) have been handed over to ING Satcom Limited subject to
certain terms and conditions, inter alia, including the terms of
settling the transaction under different eventualities of rejection of
transfer applications / non-transfer of Licences by 31-12-2014.

Since disposal of applications for transfer of Licences in the name of
ING Satcom Limited by the competent authorities as well as settlement
of transaction between the Company and ING Satcom Limited are still
pending, no accounting treatment is given in the books of account of
the Company for the year ended 31.03.2015.

Necessary accounting treatment will be given in the books of account of
the Company either on disposal of applications for transfer of Licences
in the name of ING Satcom Limited by the competent authorities or on
finalization of settlement of transaction with ING Satcom Limited.

10. The Company capitalized its 50,000 MTPA TDI plant at Dahej in
March 2014. The TDI plant at Dahej was in-operative for a major part
of the year due to the issues of gas emission, subsequent corrective
steps and teething problems. As at 31st March, 2015, the Company has
in pursuance of Accounting Standard (AS 28) Â ''Impairment of Assets'',
assessed impairment of its TDI Dahej plant, having regard to the
above-stated delay in starting operations and the related losses. Based
on such assessment, the Company has accounted an impairment loss of Rs.
33,000 lacs in respect of the TDI Dahej plant, which has been
recognized as an exceptional item in the statement of profit and loss.

The recoverable amount of the relevant assets has been determined on
the basis of their value in use.

In estimating the future cash flows, management has based on externally
available information, made certain assumptions relating to the future
raw material prices, future TDI prices, operating parameters and the
assets useful life which management believes reasonably reflects the
future expectation of these items. However, if these assumptions change
consequent to change in future conditions, there could be further
adverse / favourable effect on the recoverable amount of the asset.

The assumption will be monitored on a periodic basis by the management
and adjustments will be made if external conditions relating to the
assumptions indicate that such adjustments are appropriate.

11. Confirmations of certain parties and banks for amounts due to
them/ amounts due from them as per accounts of the Company are not
received. Necessary adjustments, if any, will be made when the
confirmations are received, reconciled and settled.

12. Segment Information:

Based on the guiding principles given in Accounting Standard on
''Segment Reporting'' (AS-17) as notified by Companies (Accounting
Standards) Rules, 2006, the Company''s primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT Division''s
activities) which have got their own respective risk and return
profiles.

13. The previous year''s figures have been regrouped/ reclassified,
wherever necessary, to conform to the figures of the current year
presentation. Figures are rounded off to the nearest lacs.

Mar 31, 2014

1. Other Commitments:

(i) The Company is committed to invest a further sum of Rs. 2,320 lacs
(31-03-2013: Rs. 2,975 lacs) in the equity share capital of Bhavnagar
Energy Co. Ltd. (BECL) as per the terms of the Shareholders''
Agreement. The Company is also committed to grant subordinate debt of
Rs. 540 lacs (31-03-2013: Rs. Nil) to BECL in the manner and in the
form as may be fi nalized by the promoters with BECL.

4. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Company''s existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

5. The Company has entered into a Shareholders'' Agreement for its
investments in the equity share capital of Bhavnagar Energy Co. Ltd.
(BECL) and Bharuch Dahej Railway Co. Ltd. (BDRCL). The agreement with
regard to the equity investment in BECL, inter alia, includes terms
whereby the Company''s investment in the equity
share capital of BECL is subject to restrictions as regards transfer of
shares upto the date of successful commercial operations of BECL.
Similarly, the agreement with regard to the equity investment in BDRCL,
inter alia, includes terms whereby the Company''s investment in the
equity share capital of BDRCL is subject to lock in period
restrictions. As per the said terms, the Company cannot transfer any
part of the equity shares acquired pursuant to the agreement for a
period of four years from the date of commercial operations of BDRCL.

7. As per the provisions of "The Micro, Small And Medium Enterprises
Development Act, 2006", the principal amount payable to Micro, Small
and Medium enterprises is Rs. 726.92 Lacs (31-3-2013: Rs. 541.27 Lacs)
The payments to Micro, Small and Medium undertakings have been made
within the prescribed time limit/ date agreed upon with supplier and
hence no interest is payable for delayed payments. These amounts have
been included in Trade Payables.

This information has been determined to the extent such parties have
been identifi ed on the basis of information available with the
Company.

8. Related Party Disclosures:

Related party disclosures, as required by AS-18, "Related Party
Disclosures", are given below:

The Company has a defi ned benefi t gratuity plan. Every employee who
has completed fi ve years or more of service gets a gratuity as per
payment of Gratuity Act. The Scheme is funded with Gratuity Trust.

9. Operating Lease:

The Company has given offi ce premises on operating lease. The lease
term is for three to four years. There are no restrictions imposed by
lease arrangements.

In accordance with the above stated amendment to AS 11, the Company has
capitalized exchange loss, arising on long-term foreign currency loan
and payables, amounting to Rs. 4,196.15 lacs (Previous year: Rs. 708.62
lacs) to the cost of Capital Work in Progress (CWIP). The Company has
also capitalized exchange gain, arising on long-term foreign forward
contract, undertaken to fully hedge the foreign currency loan,
amounting to Rs. 3,362.44 lacs (Previous year: Rs. 185.72 lacs) to the
cost of CWIP.

11. Th e Scheme of Arrangement and Demerger for transfer of V-SAT/ISP
Gateway Business of the Company to ING Satcom Ltd., an unlisted Company
against cash consideration of Rs.6 crore, was approved by the Board of
Directors at its meeting held on July 31, 2010 and further approved by
the shareholders, secured creditors and unsecured creditors of the
Company at their respective meetings held on 31.8.2011 in pursuance of
the directions given by Hon''ble High Court of Gujarat.

The "Appointed Date" of the Scheme is 1st April, 2010.

On approval to the Scheme as aforesaid, a Company Petition was fi led
before Hon''ble High Court of Gujarat for its sanction to the said
Scheme. Hon''ble High Court of Gujarat sanctioned the Scheme of
Arrangement and Demerger of V-SAT and ISP Gateway Business Division/
Undertaking to ING Satcom Limited, an unlisted Company vide its Common
Oral Order dated June 15, 2012. The Company received from the Hon''ble
High Court of Gujarat, the certifi ed copy of drawn up Order
sanctioning the Scheme of Arrangement and Demerger of V-SAT and ISP
Gateway Business Division/

Undertaking to ING Satcom Limited, an unlisted Company. The Company
physically fi led the Order(s) with the Registrar of Companies, Gujarat
on 16th August, 2012.

Subsequent to the Order passed by the Hon''ble High Court of Gujarat,
sanctioning the Scheme of Demerger, two separate applications for
transfer of V-SAT and ISP Gateway Licenses standing in the name of the
Company to the name of Transferee Company viz. ING Satcom Limited have
been submitted to Department of Telecommunications (DOT) on 31st
January, 2013.

As per the legal opinion obtained from Legal Consultant, though the
Scheme has been sanctioned by the Hon''ble High Court of Gujarat and has
become effective on 16.8.2012, the Scheme is subject to and conditional
upon the approval of the Government Authorities for transfer of Licence
of V-SAT from GNFC to ING Satcom Limited. Hence, no accounting
treatment in respect of Demerger Scheme is given in the books of
account of the Company for the year ended 31.03.2014.

Necessary accounting treatment will be given in the books of account of
the Company on transfer of Licenses in the name of ING Satcom Ltd. by
the competent authorities, which is in progress.

12. Confirmations of certain parties and banks for amounts due to
them/ amounts due from them as per accounts of the Company are not
received. Necessary adjustments, if any, will be made when the confi
rmations are received, reconciled and settled.

13. Segment Information:

Based on the guiding principles given in Accounting Standard on
''Segment Reporting'' (AS-17) as notifi ed by Companies (Accounting
Standards) Rules, 2006, the Company''s primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT Division''s
activities) which have got their own respective risk and return profi
-les.

Mar 31, 2013

1. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Company''s existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

2. The Company has entered into a Shareholders'' Agreement for its
investments in the equity share capital of Bhavnagar Energy Co. Ltd.
(BECL) and Bharuch Dahej Railway Co. Ltd. (BDRCL). The agreement with
regard to the equity investment in BECL, inter alia, includes terms
whereby the Company''s investment in the equity share capital of BECL is
subject to restrictions as regards transfer of shares upto the date of
successful commercial operations of BECL. Similarly, the agreement with
regard to the equity investment in BDRCL, inter alia, includes terms
whereby the Company''s investment in the equity share capital of BDRCL
is subject to lock in period restrictions. As per the said terms, the
Company cannot transfer any part of the equity shares acquired pursuant
to the agreement for a period of four years from the date of commercial
operations of BDRCL.

4. As per the provisions of "The Micro, Small And Medium Enterprises
Development Act, 2006", the principal amount payable to Micro, Small
and Medium enterprises is Rs. 541.27 Lacs (31-3-2012: Rs. 863.74 Lacs)
The payments to Micro Small and Medium undertakings have been made
within the prescribed time limit/ date agreed upon with supplier and
hence no interest is payable for delayed payments. These amounts have
been included in Trade Payables.

This information has been determined to the extent such parties have
been identified on the basis of information available with the Company.

In accordance with the above stated amendment to AS-11, the Company has
capitalized exchange loss, arising on long-term foreign currency loan
and payables, amounting to Rs. 708.62 lacs

(Previous year: Rs. 737.14 lacs) to the cost of Capital Work in
Progress (CWIP). The Company has also capitalized exchange gain,
arising on long-term foreign forward contract, undertaken to fully
hedge the foreign currency loan, amounting to Rs. 185.72 lacs (Previous
year: Rs. 172.01 lacs) to the cost of CWIP.

7. The Scheme of Arrangement and Demerger for transfer of V-SAT/ ISP
Gateway Business of the Company to ING Satcom Ltd., an unlisted Company
against cash consideration of Rs.6 crore, was approved by the Board of
Directors at its meeting held on July 31, 2010 and further approved by
the shareholders, secured creditors and unsecured creditors of the
Company at their respective meetings held on 31.8.2011 in pursuance of
the directions given by Hon''ble High Court of Gujarat.

The "Appointed Date" of the Scheme is 1st April, 2010.

On approval to the Scheme as aforesaid, a Company Petition was filed
before Hon''ble High Court of Gujarat for its sanction to the said
Scheme. Hon''ble High Court of Gujarat sanctioned the Scheme of
Arrangement and Demerger of V-SAT and ISP Gateway Business Division/
Undertaking to ING Satcom Limited, an unlisted Company vide its Common
Oral Order dated June 15, 2012. The Company received from the Hon''ble
High Court of Gujarat, the certified copy of drawn up Order sanctioning
the Scheme of Arrangement and Demerger of V-SAT and ISP Gateway
Business Division/ Undertaking to ING Satcom Limited, an unlisted
Company. The Company physically filed the Order(s) with the Registrar
of Companies, Gujarat on 16th August, 2012.

Subsequent to the Order passed by the Hon''ble High Court of Gujarat,
sanctioning the Scheme of Demerger, two separate applications for
transfer of V-SAT and ISP Gateway Licenses standing in the name of the
Company to the name of Transferee Company viz. ING Satcom Limited have
been submitted to Department of Telecommunications (DOT) on 31st
January, 2013.

As per the legal opinion obtained from Legal Consultant, though the
Scheme has been sanctioned by the Hon''ble High Court of Gujarat and has
become effective on 16.8.2012, the Scheme is subject to and conditional
upon the approval of the Government Authorities for transfer of Licence
of V-SAT from GNFC to ING Satcom Limited. Hence, no accounting
treatment in respect of Demerger Scheme is given in the books of
account of the Company for the year ended 31.03.2013.

Necessary accounting treatment will be given in the books of account of
the Company on transfer of Licenses in the name of ING Satcom Ltd. by
the competent authorities, which is in progress.

8. Confirmations of certain parties and banks for amounts due to them
/ amounts due from them as per accounts of the Company are not
received. Necessary adjustments, if any, will be made when the
confirmations are received, reconciled and settled.

9. Segment Information:

Based on the guiding principles given in Accounting Standard on
''Segment Reporting'' (AS-17) as notified by Companies (Accounting
Standards) Rules, 2006, the Company''s primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT Division''s
activities) which have got their own respective risk and return
profiles.

10. The previous year''s figures have been regrouped / reclassified,
wherever necessary, to conform to the figures of the current year
presentation. Figures are rounded off to the nearest lacs.

Mar 31, 2012

A. Security details:

(i) Rupee term loans from banks are secured by way of first mortgage on
all immovable properties, both present and future for which charge is
created / to be created and are further secured by way of hypothecation
created / to be created on all non-current assets and second charge by
way of hypothecation created / to be created on all current assets
including stocks and book debts.

(ii) Foreign currency term loan from bank is secured by way of first
mortgage on all immovable properties, both present and future for which
charge is to be created and is further secured by way of hypothecation
to be created on all movable fixed assets.

(iv) Unsecured rupee term loan from bank is against assignment of
security held by the Company towards outstanding of House Building
Advance given to its employees and carries interest @ 11.70 % p.a.
(floating) payable on monthly basis. The loan is repayable in quarterly
installments starting from 31.12.2009 and ending on 30.9.2014.

(v) Unsecured rupee term loan from other of Rs. 55,000 lacs carries
interest @ 9.25 % p.a. (floating) payable on quarterly basis. The loan
is repayable in quarterly installments starting from 24.2.2012 and
ending on 24.11.2012.

(vi) Unsecured rupee term loan from other of Rs. 10,000 lacs carries
interest @ 9.25% p.a. (floating) payable on quarterly basis. The loan
is repayable in quarterly installments starting from 31.12.2013 and
ending on 30.09.2015.

1. Contingent Liabilities not provided for:

(i) Claims against the Company not acknowledged
as debts (mainly on account of water charges) 3,227.59 2,369.66

(iv) Demands in respect of Central Excise Duty,
Service Tax and VAT in fertilizers and chemical
divisions' activities and the same as
estimated by the Company 3,027.62 1,724.21

2. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Company's existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

3. The Company has entered into a Shareholders' Agreement for its
investments in the equity share capital of Bhavnagar Energy Co. Ltd.
(BECL) and Bharuch Dahej Railway Co. Ltd. (BDRCL). The agreement with
regard to the equity investment in BECL, inter alia, includes terms
whereby the Company's investment in the equity share capital of BECL
is subject to restrictions as regards transfer of shares upto the date
of successful commercial operations of BECL. Similarly, the agreement
with regard to the equity investment in BDRCL, inter alia, includes
terms whereby the Company's investment in the equity share capital of
BDRCL is subject to lock in period restrictions. As per the said terms,
the Company cannot transfer any part of the equity shares acquired
pursuant to the agreement for a period of four years from the date of
commercial operations of BDRCL.

5. As per the provisions of "The Micro, Small And Medium
Enterprises Development Act, 2006", the principal amount payable to
Micro, Small and Medium enterprises is Rs. 863.74 lacs (Previous year
Rs. 1,311.27 lacs). The payments to Micro, Small and Medium
undertakings have been made within the prescribed time limit / date
agreed upon with supplier and hence no interest is payable for delayed
payments. These amounts have been included in Trade Payables. This
information has been determined to the extent such parties have been
identified on the basis of information available with the Company.

6. a. Finance Lease:

The Company had given CNG Buses to Gujarat State Road Transport
Corporation (GSRTC) on finance lease for the period of three years
which has been completed in the Financial Year 2010-11. As per the
terms of Memorandum of Understanding (MoU), after the completion of
total lease payments, the leased assets will be on the name of and
under the ownership of GSRTC by paying Residual Value upto 1% of the
total cost of the leased assets by GSRTC to the Company.

Necessary adjustment will be made in the Books of Accounts on
completion of necessary formalities and receipt of the Residual Value
of the leased assets from GSRTC by the Company.

b. Operating Lease:

The Company has given office premises on operating lease. The lease
term is for three to four years. There are no restrictions imposed by
lease arrangements.

In accordance with the above stated amendment to AS-11, the Company has
capitalized exchange loss, arising on long-term foreign currency loan,
amounting to Rs. 737.14 lacs (Previous year: Rs. Nil lacs) to the cost
of Capital Work in Progress (CWIP). The Company has also capitalized
exchange gain, arising on long- term foreign forward contract,
undertaken to partially hedge the foreign currency loan, amounting to
Rs. 172.01 lacs (previous year: Rs. Nil lacs) to the cost of CWIP.

8. In view of confirmation of long term availability of LSHS, it was
decided to initiate closure of the Wet gas Sulphuric Acid Project which
was under implementation and a provision of Rs. 3,000.00 lacs had been
made in the Statement of Profit and Loss for the year 2009-10 towards
the impact of the closure. Now upon finalization of the impact of the
project closure at Rs. 2,773.35 lacs, the same has been adjusted
against the provision of Rs. 3,000.00 lacs made in 2009-10 and excess
provision of Rs. 226.65 lacs has been written back in the current year
2011-12 as 'Other Income'.

9. Board of Directors at its meeting held on July 31, 2010 had, inter
alia, approved-

(a) The Transfer of V-SAT / ISP Gateway Business of GNFC to ING Satcom
Ltd., an unlisted Company, through Scheme of Arrangement and De-merger
against cash consideration of Rs. 6 crores.

(b) Draft Scheme of Arrangement and De-merger in respect of proposed
Transfer of V-SAT / ISP Gateway Business of GNFC to ING Satcom Ltd., an
unlisted Company.

The "Appointed Date" of the Scheme is 1st April, 2010.

The draft Scheme of Arrangement and Demerger for transfer of V-SAT /
ISP Gateway Business of the Company to ING Satcom Ltd., an unlisted
Company, against cash consideration of Rs. 6 crores, has been approved
by the shareholders, secured creditors and unsecured creditors of the
Company at their respective meetings held on 31.8.2011 in pursuance of
the directions given by Hon'ble High Court of Gujarat.

On approval to the Scheme as aforesaid, a Company Petition has been
filed before Hon'ble High Court of Gujarat for its sanction to the
said Scheme which is now posted for final hearing.

Necessary adjustments will be made in the Books of Accounts on
completion of all formalities in this regard and on obtaining & filing
with the concerned Registrar of Companies the Order of Hon'ble High
Court of Gujarat sanctioning the scheme of Arrangement and Demerger.

10. Confirmations of certain parties and banks for amounts due to them
/ amounts due from them as per accounts of the Company are not
received. Necessary adjustments, if any, will be made when the
confirmations are received, reconciled and settled.

11. Segment Information:

Based on the guiding principles given in Accounting Standard on
'Segment Reporting' (AS-17) as notified by Companies (Accounting
Standards) Rules, 2006, the Company's primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT
Division's activities) which have got their own respective risk and
return profiles.

12. The Company prepares and presents its financial statements as per
Schedule VI to the Companies Act, 1956, as applicable to it from time
to time. In view of revision to the Schedule VI as per the
notifications issued by the Ministry of Corporate Affairs (MCA),
Government of India, the financial statements of the Company for the
financial year ended 31st March, 2012 have been prepared as per the
requirements of the Revised Schedule VI to the Companies Act, 1956. The
previous year's figures have been accordingly regrouped /
reclassified wherever necessary to conform to the figures of the
current year presentation. Figures are rounded off to the nearest lacs.

Mar 31, 2011

(Rs. in Lacs)

2010-11 2009-10

1. Estimated amount of contracts
remaining to be executed on capital
account and not provided for (Net of
Advances) 1,08,254.57 1,03,736.61

2. Contingent Liabilities not
provided for:
(i) Claims against the Company not
acknowledged as debts (mainly on
account of water charges) 2,369.66 1,803.60

(ii) Guarantees / Letters of
Credit given
by Banks on behalf of the Company 24,494.90 29,665.92

3. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Company's existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

5. As per the provisions of "The Micro, Small And Medium Enterprises
Development Act, 2006", the principal amount payable to Micro, Small
and Medium enterprises is Rs. 1,311.27 Lacs (Previous year Rs. 800.78
Lacs). The payments to Micro, Small and Medium undertakings have been
made within the prescribed time limit/ date agreed upon with supplier
and hence no interest is payable for delayed payments. These amounts
have been included in Sundry Creditors.

This information has been determined to the extent such parties have
been identified on the basis of information available with the Company.

6 a) Finance Lease:

The Company has given CNG Bu es to G jarat St te Road Transport
Corporation (GS TC) on fi ance lea e for the period of three years
which has been completed in the cu rent Fina cial Year 2010-11. As per
the terms o Memoran um of U derstand g (MoU), after the completion of
total ease payments, th leased ssets will be on the name of and under
the ownership o GSRTC y paying Residual Value upto 1% of the total ost
of th leased ssets by GSRTC to the Company.

Necessary adjustment will be made in the Books of Accounts on
completion of necessary formalities and receipt of the Residual Value
of the leased assets from GSRTC by the Company.

7. In view of confirmation of long term availability of LSHS now, it
has been decided to initiate closure of the Wet gas Sulphuric Acid
Project which was under implementation. Provision of Rs. 30 crore has
been made in the Profit & Loss Account for the year 2009-10 towards the
impact of the closure. Further necessary adjustments will be made in
the Books of Accounts on finalization of the impact of the project
closure.

8. As per the Accounting Policy adopted, the Company had so far been
accounting insurance claims on accrual basis. However, this accounting
policy is reviewed and revised to cash basis from the current Financial
Year 2010-11. Had there been no change in Accounting Policy, the Profit
after Tax (PAT) for the current year and Reserves and Surplus as well
as Loans and Advances as on 31-03-2011 would have been higher by Rs.
347.27 lacs.

9. Board of Directors at its meeting held on July 31, 2010 had, inter
alia, approved- (a) The Transfer of V-SAT / ISP Gateway Business of
GNFC to ING

Satcom Ltd., an unlisted company through Scheme of Arrangement

and De-merger against cash consideration of Rs. 6 crore. (b) Draft
Scheme of Arrangement and De-merger in respect of
proposed Transfer of V-SAT / ISP Gateway Business of GNFC
to ING Satcom Ltd., an unlisted company. Subsequent to approval to the
Scheme of Arrangement and De- merger by the Board of Directors, an
application to the Bombay Stock Exchange Ltd. and the National Stock
Exchange of India Ltd. for their approval as required under the
Listing Agreement was made and such approval from both the Stock
Exchanges have been received. The Company is now in the process of
filing an application before Hon'ble High Court of Gujarat for
obtaining its directions for holding of meetings of its shareholders
and creditors for their approval to the Scheme.

Necessary adjustments will be made in the Books of Accounts on
completion of all formalities in this regard and on obtaining & filing
with the concerned Registrar of Companies the Order of Hon'ble High
Court of Gujarat sanctioning the scheme of Arrangement and De-merger.

10. Confirmations of certain parties and banks for amounts due to them/
amounts due from them as per accounts of the Company are not received.
Necessary adjustments, if any, will be made when the confirmations are
received, reconciled and settled.

11. Previous year's figures have been regrouped wherever necessary to
conform to the figures of the current year.

12. Segment Information:

Based on the guiding principles given in Accounting Standard on
'Segment Reporting' (AS-17) as notified by Companies Accounting
Standards Rules, 2008, the Company's primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT Divisions'
activities) which have got their own respective risk and return
profiles.

Mar 31, 2010

(Rs. in Lacs)

2009-10 2008-09

1. Estimated amount of contracts remaining
to be executed on capital account and not
provided for (Net of Advances) 1,03,736.61 41,999.48

2. Contingent Liabilities not provided for:
(i) Claims against the Company not
acknowledged as debts (mainly on
account of water charges and
compensation for land acquisition) 1,803.60 1,146.02

(ii) Guarantees / Letters of Credit given
by Banks on behalf of the Company 29,665.92 38,443.42

3. The Company has strategic investment in the equity capital of
Gujarat Chemical Port Terminal Company Ltd. (GCPTCL) in capacity of
promoters, aggregating to Rs. 4,941.00 lacs as on 31st March, 2010.

As per the Corporate Debt Restructuring (CDR) programme undertaken,
GCPTCL has reduced the face value of its equity share from Rs.10/- each
to Re.1/- each. In view of the above, the Company has made provision of
Rs. 3,101.40 lacs in the current year towards diminution in value of
investment in the equity of GCPTCL.

4. As one of the promoters of Gujarat Chemical Port Terminal Company
Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
to transfer, assign, dispose off, pledge, charge, or create any lien or
in any way encumber Companys existing or future shareholding in the
GCPTCL in favour of any person so long as money remains due by GCPTCL
to ICICI Bank or till the project is duly completed, whichever is
later.

6. As per the provisions of "The Micro, Small And Medium Enterprises
Development Act, 2006", the principal amount payable to Micro, Small
and Medium enterprises is Rs. 800.78 lacs (Previous year Rs. 434.28
lacs) The payments to Micro Small and Medium undertakings have been
made within the prescribed time limit/ date agreed upon with supplier
and hence no interest is payable for delayed payments. These amounts
have been included in Sundry Creditors.

This information has been determined to the extent such parties have
been identified on the basis of information available with the Company.

* For part of the current year/ previous year

7. In view of confirmation of long term availability of LSHS now, it
has been decided to initiate closure of the Wet gas Sulphuric Acid
Project which was under implementation. Provision of Rs. 30 crores has
been made in the Profit & Loss Account towards the impact of the
closure. Further necessary adjustments will be made in the Books of
Accounts on finalization of the impact of the project closure.

8. The Company has accounted income of Rs. 34 crores in current
financial year towards estimated insurance claim of Business
Interruption for the period upto 31-03-2010 following accident in
Section 700 of Ammonia Plant of the Company on 09-02-2010 (3rd shift).

9. Confirmations of some parties and banks for amounts due to them/
amounts due from them as per accounts of the Company are not received.
Necessary adjustments, if any, will be made when the confirmations are
received, reconciled and settled.

10. Previous years figures have been regrouped wherever necessary to
conform to the figures of the current year.

11. Segment Information:

Based on the guiding principles given in Accounting Standard on
Segment Reporting (AS-17) as notified by Companies Accounting
Standards Rules, 2008, the Companys primary business segments are
Fertilizers, Chemicals and Others (which includes mainly IT Divisions
activities) which have got their own respective risk and return
profiles.